Tiger Brands - Climate Change 2018 C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization. Tiger Brands Limited is a Top 40 JSE Limited company that operates mainly in South Africa and selected emerging markets. Its main activities are manufacturing, processing and distribution of branded food as well as home, personal and baby care products. Tiger Brands is one of the largest manufacturers and marketers of FMCG products in Southern Africa, and has been for several decades. The company has grown over many decades through the acquisition and clustering of businesses. Our success comes from the perpetual renovation and innovation of our brands, while our approach to expansion, acquisitions and joint ventures has given traction to a distribution network that now spans more than 22 African countries. For the period under review, newly acquired businesses in our International division will be excluded. The company’s vision is to be the world’s most admired branded consumer packaged Goods Company in emerging markets whilst our strategy includes on-going focus and investment to: Drive Revenue Growth Accelerate Expansion in Emerging Markets Expand into Adjacent New Categories Achieve Cost Leadership Advance Customer Leadership and Market Capability Brand Leadership Income Categories in order to Protect Positions Our wide range of brands are underpinned by comprehensive research and meaningful insights into each of the markets in which Tiger Brands operates. Tiger Brands is a world–class operation and will continue to hold and grow its position through constant investment in every asset of the business, be it in people, brands, technology, efficiency, quality or sustainability.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start date End date

Indicate if you are providing emissions data for past reporting years

Select the number of past reporting years you will be providing emissions data for

Row 1 January 1 2017 December 31 2017 No <Not Applicable>

Row 2 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Row 3 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Row 4 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

C0.3

(C0.3) Select the countries/regions for which you will be supplying data. Cameroon Kenya Nigeria South Africa

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response. ZAR

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gas inventory. Operational control

C-AC0.6/C-FB0.6/C-PF0.6

(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry, processing/manufacturing, distribution activities or emissions from the consumption of your products – whether in your direct operations or in other parts of your value chain – relevant to your current CDP climate change disclosure?

Relevance

Agriculture/Forestry Elsewhere in the value chain only [Agriculture/Forestry/processing/manufacturing/Distribution only]

Processing/Manufacturing Both direct operations and elsewhere in the value chain [Processing/manufacturing/Distribution only]

Distribution Elsewhere in the value chain only [Agriculture/Forestry/processing/manufacturing/Distribution only]

Consumption Yes [Consumption only]

C-AC0.6b/C-FB0.6b/C-PF0.6b

(C-AC0.6b/C-FB0.6b/C-PF0.6b) Why are emissions from agricultural/forestry activities undertaken on your own land not relevant to your current CDP climate change disclosure? Row 1 Primary reason Do not own/manage land Please explain Tiger Brand's is a food converter, therefore does not directly own any farms but engages with agricultural activities through the company's supply chain.

C-AC0.6f/C-FB0.6f/C-PF0.6f

(C-AC0.6f/C-FB0.6f/C-PF0.6f) Why are emissions from distribution activities within your direct operations not relevant to your current CDP climate change disclosure? Row 1 Primary reason Outside the scope of my organization Please explain Tiger Brands goods are distributed via outsourced logistics partners. Tiger Brands has been promoting logistics partners to ensure green logistics and to consider reducing their environmental impact attributed to logistics. The company is currently busy with a project to map out current networks for the distribution of the company’s finished goods from the manufacturing operations to the depots and distribution centres and thereafter to our customers. This also includes the mapping of the direct deliveries done from the

manufacturing sites to the customers where applicable. The company acknowledges that transport has become cleaner, but increased volumes mean it remains a major source of noise and local air pollution. There is a focused drive to reduce travel and transportation by substituting and optimizing existing travel and transportation systems plus also reviewing our logistics network. This is jointly being done by the Sales & Operations Planning and Procurement teams in order to ensure effective and efficient logistics in our operations which will ultimately, reduce the impact on climate change.

C-AC0.7/C-FB0.7/C-PF0.7

(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization produces and/or sources are the most significant to your business by revenue? Select up to five. Agricultural commodity Sugar % of revenue dependent on this agricultural commodity 60-80% Produced or sourced Sourced Please explain Sugar is used on our majority of the products manufactured at Tiger Brands.

Agricultural commodity Other, please specify (Vegetables) % of revenue dependent on this agricultural commodity 40-60% Produced or sourced Sourced Please explain Vegetables are use in the Culinary and Langerberg and Asthon facilities.

Agricultural commodity Other, please specify (Maize and Sorghum ) % of revenue dependent on this agricultural commodity 40-60%

Produced or sourced Sourced Please explain Maize and Sorghum are used to majority of the Grains product. Tiger Brands is depandant on Maize and Sorghum.

Agricultural commodity Other, please specify (Fruit) % of revenue dependent on this agricultural commodity 20-40% Produced or sourced Sourced Please explain Used to manufacture Baby Food, Jam and in the Langerberg and Ashton facilities.

Agricultural commodity Wheat % of revenue dependent on this agricultural commodity 20-40% Produced or sourced Sourced Please explain Maize and Sorghum are used to majority of the Grains product. Tiger Brands is depandant on Maize and Sorghum.

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization? Yes

C1.1a

(C1.1a) Identify the position(s) of the individual(s) on the board with responsibility for climate-related issues. Position of individual(s) Please explain

Other, please specify (Chief Supply Chain Officer)

The CSCO has been appointed with overall responsibility to Environmental responsibility to RISK & SET committees where climate change impact and mitigation is tabled plus discussed

Other, please specify (Group Corporate Affairs and Sustainabili)

The role plays a critical accountability and execution role in CSI initiatives plus projects managed through external stakeholders and set partnerships. The role further sits in the RISK plus Social, Ethics and transformation committees

Other, please specify (Risk and Environmental Sustainability Di) Group responsibility for sustainability

Chief Executive Officer (CEO) Appointed by board for full accountability on climate change issue management and progressive project mitigation and adaptability where there is fit for purpose actions to be undertaken

Other, please specify (Business Executive Consumer Brands ) Portfolio responsibility

Other, please specify (Business Executive HPCB, Exports & Inte) Portfolio Responsibility

Other, please specify (Business Executive Grains) Portfolio Responsibility

Other, please specify (Social, Ethics and Transformation Commit) Committee nominated by board, chairman and non-executive directors

Other, please specify (Chairman) Group and Business Lead - the CEO reports into him . Chairman sits in the nominated committed i.e. RISK and SET plus the Governance - which all work through issues related to Climate Change

C1.1b

(C1.1b) Provide further details on the board’s oversight of climate-related issues. Frequency with which climate-related issues are a scheduled agenda item

Governance mechanisms into which climate-related issues are integrated Please explain

Scheduled – all meetings

Reviewing and guiding strategy Reviewing and guiding risk management policies Reviewing and guiding business plans

Scheduled meetings - Risk committee, Social Ethics Transformation Committee, Governance, External and Internal Audits

C1.2

(C1.2) Below board-level, provide the highest-level management position(s) or committee(s) with responsibility for climate-related issues. Name of the position(s) and/or committee(s) Responsibility

Frequency of reporting to the board on climate-related issues

Environment/ Sustainability manager Both assessing and managing climate-related risks and opportunities More frequently than quarterly

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate-related issues are monitored. The highest level of climate change responsibility ultimately lies with the Board. The Tiger Brands Risk and Sustainability Committee and Social and Ethics Committee have been established by the Board. The Risk and Sustainability Committee reviews the company's carbon footprint, energy risks and efficiency progress biannually as part of an overall good business practice measurement. At an operational level the manufacturing units report on environmental indicators which are collated into an overall scorecard for the purposes of quarterly reporting to the executive committees. K.D.K Mokhele is the Risk and Sustainability Committee chairman. The committee is made up of four non-executive directors and three business executive directors. The three business executives have full responsibility and accountability for their divisional performance. In addition the Chief Supply Chain officer, who reports directly to the CEO, takes operational accountability for climate change. In summary, the key personnel indicated below are imperative in driving the Tiger Brands sustainability strategy implementation: Patrick Sithole – Chief Supply Chain Officer Mary Jane Morifi– Group Corporate Affairs and Sustainability Executive Julie Ntsekhe - Group Manufacturing Excellence Executive Risk and Sustainability Committee Business Executive Consumer Brands Business Executive HPCB, Exports & International- Neil Brimacombe Business Executive Grains- Noel Doyle

Tswelo Kodisang- Social, Ethics and Transformation Committee

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets? Yes

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues. Who is entitled to benefit from these incentives? Corporate executive team Types of incentives Monetary reward Activity incentivized Energy reduction project Comment Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Environmental criteria included in purchases Supply chain engagement Other: Behaviour change related indicator Targets set for achievement of bonuses. Inclusion of Environmental KPI’s with specific set targets to be achieved. Targets must be met or executed / exceeded for bonus processing Supplier Evaluation inclusive of Environmental practices Procurement preference given to Sustainability sourced materials and services

Who is entitled to benefit from these incentives? Facilities manager Types of incentives Monetary reward Activity incentivized Emissions reduction project Comment Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Environmental criteria included in purchases Other: Behaviour change related indicator Facility Managers in Tiger Brands look

after Site Engineering, Energy Management, CAPEX Project management, Environmental Sustainability Management. Through the Individual Performance Appraisal system, the Facilities Managers are rewarded / incentivised for their performance in the core Climate Change initiatives that are set by the organisation.

Who is entitled to benefit from these incentives? Board/Executive board Types of incentives Monetary reward Activity incentivized Emissions reduction project Comment Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Environmental criteria included in purchases Targets set for achievement of bonuses. Inclusion of Environmental KPI’s. Targets must be met or executed

C2. Risks and opportunities

C2.1

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From (years)

To (years) Comment

Short-term 1 3

ISOMETRIX – GHG Reporting to DEA Set Science based targets to have a set target to reduce GHG emissions Energy Efficient Technologies LED Lighting ISO 14001 certification retained Energy efficient operations Reduction in Waste (solid, hazardous & electronic) Water stewardship and conservation through reduced water consumption and restored water stream health Air & GHG emissions reduced Managing scarce resources - online metering solution for recording, monitoring and managing utilities (Energy, Steam System and Water) Product stewardship Cradle to cradle Compliance to Carbon Policy

Medium-term 4 7

Implement ISO 50001 External partnerships Sustainable sourcing of ingredients Packaging innovation collaboration with suppliers Implementation of Carbon offset projects and initiatives. Reduce Energy – 7% ; Water – 7.5% ; Waste – 8% ; Packaging – 5% Implement Green supply chain management

Long-term 7 10 Look towards moving of the current grid system by using renewable energy.

C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managing climate-related issues are integrated into your overall risk management. Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessing climate-related risks.

Frequency of monitoring

How far into the future are risks considered? Comment

Row 1

Six-monthly or more frequently 3 to 6 years

Respective geographical area within: South Africa Kenya Cameroon The reporting is done as Divisional, Country Specific, Business Unit and Total Group. Risks are considered for all areas where Tiger Brands manufacturing sites are present. On a quarterly basis the Risk and Sustainability Committee review the identified risks and ensure that mitigation plans are still relevant or rework these where applicable. Sustainability is always considered in business decision making and is included in all capex documents. A risk register and materiality matrix are tools used and managed internally.

C2.2b

(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks. Tiger Brands first and foremost considers legislation as the most important climate risk. We ensure that the company is aware and complies with all legislations that will impact the company. Governance- we disclose all the companies governance round climate related risk and opportunities in Integrated reports. Description of the board’s oversights of and management’s role in assessing and managing climate related risk and opportunities. Tiger Brands develops strategies on the financial risk and opportunities the companies identified and the impact of these risk to the business, strategy and financial planning. A risk management program is in place. A risk register and materiality matrix are tools used and managed internally by Tiger Brands. We further partner with industry communities and associations to validate and verify the FMCG industry risks. These are then also

included in the organisational risk registers and materiality matrix. Environmental risks and opportunities are embedded into business processes. The company is in progress of setting science base targets to have set metrics and targets to measure and comply to.

C2.2c

(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance & inclusion Please explain

Current regulation Relevant, always included Imperative to the organisation as we will receive penalties for non-compliance

Emerging regulation Relevant, always included Imperative to the organisation as we can plan ahead for upcoming regulation.

Technology Relevant, sometimes included Assessed in the upgrade and new facilities as this helps to lower climate risk.

Legal Relevant, always included Imperative to the organisation as we will receive penalties for non-compliance

Market Relevant, sometimes included Helps with competitive advantage

Reputation Relevant, always included Imperative to the organisation as the brand of the company needs to be protected and helps with competitive advantage

Acute physical Not evaluated No comment

Chronic physical Not evaluated No comment

Upstream Not evaluated No comment

Downstream Not evaluated No comment

C2.2d

(C2.2d) Describe your process(es) for managing climate-related risks and opportunities. A risk register and materiality matrix are tools used and managed internally by Tiger Brands. We further partner with industry communities and associations to validate and verify the FMCG industry risks. These are then also included in the organisational risk registers and materiality matrix. Environmental risks and opportunities are embedded into business processes. This ensures that risks and opportunities are identified and applied throughout the business units. Environmental indicator reports are completed by Consumer, Grains and International manufacturing sites. These sites are able to keep track of non-financial as well as related financial

data. Therefore, the sites can highlight risks and opportunities relating to climate change issues, report them to the Sustainability Committee and in turn the Board, who are able to respond to these issues in a timely manner. The process of identifying risks per division is also driven by the central environmental/climate change function within Tiger Brands. The results filter down to individual units (operational) where the impact at an asset level can be determined. The process of identifying risk involves a series of steps which are: Step 1 - Data gathering, analysis and brainstorming Step 2 - Determine the probability of the event occurring (Past Events) Step 3 - Quantifying the risk in terms of monetary value Step 4 - Prioritize risk in terms of monetary value utilizing the following formula: (Existing Risk × Projected Climate Change = Future Climate Risk) Existing Risk = Related Risk (Rands) Projected Climate Change = Frequency of the event happening (%) Future Climate Risk = Rand Value (Projected Risk) Risk is prioritized by identifying the impact of climate change on revenue generation for the business plus the social impact especially in the communities that we operate in. The risks that could also have a reputational or ethical impact to the Tiger Brands corporate image are also taken into consideration. This evaluation is conducted across the supply chain and is categorised as follows: Raw material supply Utility requirements Business Continuity (impact to running business as usual) Logistical considerations Societal Impact Sustainable sourcing and partnerships with the Value Chain

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business? Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business. Identifier Risk 1 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Policy and legal: Enhanced emissions-reporting obligations Type of financial impact driver Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums) Company- specific description Increase in operating costs due to carbon taxation. The debate on implementation of a carbon tax and or a carbon budget is still inconclusive. This creates a particular level of uncertainty for planning. Time horizon Short-term Likelihood Virtually certain Magnitude of impact High Potential financial impact Explanation of financial impact

Business performance - increased input costs, risk adverse increased, insurance for input and climate change impact higher Management method - Tiger Brands implemented an Environmental Strategy, where a key focus area is on energy consumption. The company aims to reduce its Scope 1 energy consumption therefore reducing energy consumption and in turn carbon tax liability. - Ongoing tracking of initiatives to monitor the reduction in carbon emissions against the year on year scope 1 intensity targets. - Reporting of progress to the business units and board sub-committees Cost of management Comment The cost of managing the Environmental Strategy has been absorbed internally. Costs to reduce Scope 1 emissions differ per site.

Identifier Risk 2 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Policy and legal: Enhanced emissions-reporting obligations Type of financial impact driver Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums) Company- specific description Minimum reporting obligations imposed on SA businesses would increase cost base and operational complexity. Reporting criteria would increase over time increasing the need for resources and skills internally to comply with the requirements. Time horizon Short-term Likelihood Virtually certain Magnitude of impact Medium-low Potential financial impact 150000000 Explanation of financial impact

Adherence to policy and governance mandates set - adaptability plus transitional programs require capital investment Management method Tiger Brands keep up to date with current and pending emission reporting obligations. It is the responsibility of the Risk and Sustainability committee and the Manufacturing Excellence manager to identify, manage and prioritize environmental sustainability risks; through this process the committee review current and pending regulations, including emissions reporting obligations. The organisation calculates its carbon footprint quarterly and discloses to the CDP. Cost of management 150000000 Comment No comment

Identifier Risk 3 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Policy and legal: Enhanced emissions-reporting obligations Type of financial impact driver Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums) Company- specific description In order for South Africa to meet its international GHG commitments and deliver on trade and sustainability agreements; wide-spread initiatives are required from the county's energy provider and industry. This is a potential risk to Tiger Brands as cleaner technologies are expensive. The cause and effect of this operational costs are: 1) Eskom's cost to implement the technologies may be passed to the consumer, therefore rising the cost of electricity. 2) In order to meet government targets Tiger Brands may need to invest in cleaner energy solutions, therefore increasing the capital expenditure required to retrofit sites. Time horizon Medium-term Likelihood Virtually certain Magnitude of impact

Medium Potential financial impact 2500000 Explanation of financial impact loss of supply - increased value chain impact beyond the business operations. Impact from suppliers to also the customers with losses incurred in our operations. It becomes a cumulative cost Management method A key focus area of the Tiger Brands Environmental strategy is Energy and Climate Change. Tiger Brands have outlined immediate and long term solutions to reduce energy consumption, therefore reducing GHG emissions. These actions include investigating renewable energy, waste to energy, conducting energy audits and implementing an online metering solution. Energy efficiency initiatives are already in various stages of development. Completed projects which reduce Tiger Brands reliance on grid supplied electricity include the installation of efficient lighting. Cost of management 1800000 Comment Tiger Brands Environmental Strategy is managed internally, therefore there are few additional direct costs. Costs of reducing GHG emissions differ substantially per site.

Identifier Risk 4 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Policy and legal: Mandates on and regulation of existing products and services Type of financial impact driver Policy and legal: Increased costs and/or reduced demand for products and services resulting from fines and judgments Company- specific description SANS 941, for energy efficiency of electrical and electronic equipment is a voluntary standard which is likely to be regulated, in the future, by the National Regulator for Compulsory Specification. The aim of the product labelling standard is to eliminate inefficient electrical appliances from the market. The standard is likely to increase demand for efficient products. As consumers become more

environmentally aware, this may call for a revision of the standard to include energy ratings on an increased array of consumer products. Regulation of the standard poses a non-compliance risk; fines and penalties may be incurred in the short term and the removal of inefficient products from the South African market in the long term. Time horizon Medium-term Likelihood Virtually certain Magnitude of impact Medium-low Potential financial impact 1000000 Explanation of financial impact The financial implications are difficult to quantify. It is anticipated that affected products will require innovative solutions to meet minimum energy requirements. These solutions will differ from product-to-product and will increase production costs as well as artwork, marketing and sales processes - ZAR 5mil - for key SKUs Management method Closely monitor product labeling regulations Cost of management 10000000 Comment ZAR 10mil for maintenance of labelling change requests and maintenance there-off.

Identifier Risk 5 Where in the value chain does the risk driver occur? Supply chain Risk type Transition risk Primary climate-related risk driver Policy and legal: Exposure to litigation Type of financial impact driver Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific description Stricter emission limits would imply increased capital cost requirements to improve emissions for compliance. Currently, Tiger Brands is a large user of coal as a primary driver for energy. Time horizon Short-term Likelihood Virtually certain Magnitude of impact Medium-high Potential financial impact 15000000 Explanation of financial impact Changes in air emissions act requires extensive maintenance of boilers (bag filters, gritter installations, etc.). The cost of current boiler replacement to meet newly defined standards / targets - ZAR 15mil per unit with PM below 250. Management method Steam generation is an operational requirement therefore compliance is imperative. Stack emissions testing are conducted for each boiler on an annual basis to monitor air emissions limits. Cost of management 4000000 Comment Mainetance is ZAR 1mil per unit

Identifier Risk 6 Where in the value chain does the risk driver occur? Supply chain Risk type Transition risk Primary climate-related risk driver Policy and legal: Other Type of financial impact driver Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific description Uncertainty around new regulations is a risk to Tiger Brands. New legislation could reduce the cost competitiveness of products. An example of this would be imported goods; as the legislation preventing imported goods may increase operational costs. Future legislation requirements poses a risk to product development as there is increased direct compliance concerns and indirect access to cost effective goods throughout the supply chain. It is clear however that legislative requirements would drive improved compliance and climate change actions however, what is unclear, is how this would be driven and what is expected from business. Time horizon Long-term Likelihood About as likely as not Magnitude of impact Medium Potential financial impact 2000000 Explanation of financial impact The estimated financial implications of future regulations are difficult to quantify due to the high level of uncertainty. Management method Tiger Brands keep up to date with new regulations, compliance issues and draft policies which may impact the company. Tiger Brands operations adhere to all relevant environmental regulations. Cost of management 1500000 Comment At present the cost of management is minimal as management is absorbed internally. However as new regulations come into play the cost of management to comply with legislation may increase significantly.

Identifier Risk 7 Where in the value chain does the risk driver occur? Supply chain Risk type Physical risk Primary climate-related risk driver

Chronic: Changes in precipitation patterns and extreme variability in weather patterns Type of financial impact driver Reduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions) Company- specific description South Africa is an arid country approaching physical water scarcity. This would imply failed crops and lower crop yields locally. Farm lands would need to adopt and change. With increased global warming and change in rainfall patterns and the further increased pressure for population increases, water would be a scarce and expensive resource posing a huge threat to our businesses both locally and abroad. Pollution of these natural resources and poor management of current stock could fast track shortages in the near future. This would imply inadequate supply required to produce our goods which depend heavily on a clean high quality water supply. According to S A Dept. of Environmental Affairs, South Africa water percentage as a percentage of total water available would reduce to more than 40% in 2025. Time horizon Long-term Likelihood Very likely Magnitude of impact High Potential financial impact 250000000 Explanation of financial impact ZAR 250Mil - impact to ingredients procurement sourcing. In SA it is expected that a 1% decline in rainfall will yield a 1.1% decrease in maize production and 0.5% decrease in wheat production. Placing pressure on SA's water resources as farmers attempt to maintain crop yields. This raises the costs of raw materials; impacting operating costs, or in a worst case scenario extinguishes the production of maize and wheat based products. The financial implications will be significant and will potentially extend further than staple crops. Management method The agricultural experts and market intel relationships that Tiger Brands has, help to identify initiatives which assist suppliers and the procurement team in adapting to climate change plus sourcing of materials in order to allow for smooth operation. Cost of management 5000000 Comment Consultancy fees for Insights and Research plus alternative sourcing (cost carriers) - ZAR5mil

Identifier Risk 8 Where in the value chain does the risk driver occur? Supply chain Risk type Physical risk Primary climate-related risk driver Chronic: Changes in precipitation patterns and extreme variability in weather patterns Type of financial impact driver Reduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions) Company- specific description Climate change effects have led to a greater probability of weather extremes and drought. This would result in failed and lower crop yields locally. Raw material would need to be sourced from new locations. Increases in rainfall is predicted as per S A Dept. of Environmental Affairs for certain regions of the country whilst the Western Cape faces sever droughts. Global warming and changes in rainfall patterns would considerably affect production processes and availability of farmed stock. Time horizon Long-term Likelihood Very likely Magnitude of impact Medium-high Potential financial impact 250000000 Explanation of financial impact Change in precipitation extremes and drought result in deceased crop yield, therefore increased costs for raw material to convert to food. This will have significant financial implications for Tiger Brands, the exact values have not yet been quantified as the implications are wide ranging. Management method Understanding of River Basins that are at risk of drought Cost of management 5000000 Comment

Working with Municipalities and research insights on alternative source of supply for the affected raw materials - ZAR5MIL

Identifier Risk 9 Where in the value chain does the risk driver occur? Supply chain Risk type Physical risk Primary climate-related risk driver Chronic: Changes in precipitation patterns and extreme variability in weather patterns Type of financial impact driver Reduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions) Company- specific description Severe weather conditions, heat & cold, could also cause crops and livestock losses reducing availability and creating further cost pressure due to rise in supply chain costs. Further, availability of raw materials would become a serious concern. Global weather patterns are changing and increases in temperature is evident particularly in SA. This implies hotter summer and colder winters. Crop losses due to these extremes would increase. Black frost is a key contributor to crop loss for Tiger and certain regions currently used for farming would have increased potential risks. Time horizon Medium-term Likelihood Very likely Magnitude of impact Medium Potential financial impact 250000000 Explanation of financial impact Crop losses due to these extremes would increase. Potential impact is approximated to ZAR250mil Management method Temperature changes tracking - temperature maps received from climate change understudies Cost of management Comment

Not paid for - membership with research institutes allows for free receipt of information on temparture changes in global markets

Identifier Risk 10 Where in the value chain does the risk driver occur? Direct operations Risk type Physical risk Primary climate-related risk driver Acute: Other Type of financial impact driver Increased operating costs (e.g., inadequate water supply for hydroelectric plants or to cool nuclear and fossil fuel plants) Company- specific description Inability to understand demand and availability of raw materials putting constraints on the planning and setting of long term business goals. This may lead to loss in market share or and over investment with the inability to meet demand due to stock outs from our supply chain due to reduced yields. Due to supply and demand and a demising supply of crops / livestock, aside from the high costs for these goods, our business would struggle to be able to supply the market with high quality goods. This would result in stock outs and poor service level. This would thus result in loss of customer and market share. Majority of the agricultural goods we consume in our factories to produce our brands would be under serious threat due to shortages in food stock supply due to poor / reducing yields from farms. Furthermore, the quality of the stock is also essential for us to produce a Hugh quality branded product. All of this would mean increased cost pressures and limited output. As per IMF Regional Economic Outlook, UN March 2010 Snapshot of Food Security, South Africa is Medium risk food security region. It is not clear what effect climate change will have in the medium to long term. There is a lot in uncertainty which puts business in a difficult position. This makes risk mitigation and long term planning difficult. Time horizon Long-term Likelihood More likely than not Magnitude of impact High Potential financial impact 300000000 Explanation of financial impact

Financial risk calculated using worst case scenarios as part of the risk assessments performed - ZAR 300mil Management method Full analysis of impact to input and output materials (including those supplied for key SKUs) Cost of management 10000000 Comment Estimated calculation of ZAR10mil

Identifier Risk 11 Where in the value chain does the risk driver occur? Direct operations Risk type Physical risk Primary climate-related risk driver Chronic: Other Type of financial impact driver Increased operating costs (e.g., inadequate water supply for hydroelectric plants or to cool nuclear and fossil fuel plants) Company- specific description Tiger Brands dependence on coal and grid supplied electricity poses a risk to the organisation as changes in natural resources are incurred. South Arica’s coal supply internally is under strain as exports increase to international markets. Lower quality coal causes the company to burn more coal for the same energy output; a total lack of supply would cause disruptions in production. Eskom will suffer the same low-grade coal issues as Tiger Brands. Therefore the constantly rising electricity and fossil fuel costs will have an impact on Tiger Brands operational costs. Time horizon Medium-term Likelihood More likely than not Magnitude of impact High Potential financial impact 300000000

Explanation of financial impact Financial risk calculated using worst case scenarios as part of the risk assessments performed - ZAR 300mil Management method Full analysis of impact to input and output materials (including those supplied for key SKUs) Cost of management 10000000 Comment Estimated calculation of ZAR10mil

Identifier Risk 12 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Market: Changing customer behavior Type of financial impact driver Market: Reduced demand for goods and/or services due to shift in consumer preferences Company- specific description Consumers are directly affected by the economic conditions of a country. This results in consumers becoming more demanding and taking an active role in ensuring responsible purchasing of goods and value offerings. This is forcing companies to produce greener goods to meet requirements and ensure market position and sustainability of the business. Tiger Brands embraces these changes and aims to create a competitive edge in the market. Time horizon Long-term Likelihood More likely than not Magnitude of impact High Potential financial impact 2000000

Explanation of financial impact Tiger Brands have implemented a number of initiatives to ensure business practices are environmentally responsible. The company aims to take advantages of the green goods markets by ensuring products are sustainable throughout the supply chain. The financial implications are wide ranging as they extend further than the operational control of the organisation. Management method Consumer insight surveys continue to be the applied management method for this potential risk. To ensure products are sustainable, to keep up with consumer demand; Tiger Brands have implemented and Environmental Strategy which focusses on the following key areas: - Energy - Air Emissions - Water - Packaging - Waste Tiger Brands engage with suppliers to ensure they are environmentally responsible and assist is enhancing suppliers sustainability practices and crop yields. Tiger Brands are investigating conducting LCA's to gain an enhanced understanding of a products value chain. Cost of management 50000 Comment Membership of research institutes and survey reports - Once off fee per annum ZAR50k The cost of management includes the cost of implementing the environmental strategy, the agricultural teams engagements, LCA’s on key products, etc.

Identifier Risk 13 Where in the value chain does the risk driver occur? Direct operations Risk type Transition risk Primary climate-related risk driver Reputation: Other Type of financial impact driver Reputation: Reduction in capital availability Company- specific description Lack of raw materials could potentially result in not meeting service levels and customer expectations. This could potentially result in stock outs and loss of market share to competitors. Brand damage. This could result in loss in confidence in Tiger Brands as a company. Tiger Brands reputation is enhanced by taking an active role in the transition to a low carbon economy and ensuring that the company operates within the parameters of sustainable business practices and good corporate governance. Businesses with a sound reputation in relation to environmental issues are seen as responsible producers. These organisations shall ensure that they retain and even grow

their market share. Tiger Brands are aware that ensuring sound and leading environmental practices is key to maintaining a market leader position. Financial performance in the long term would depend and green choices now. Time horizon Long-term Likelihood More likely than not Magnitude of impact High Potential financial impact 0 Explanation of financial impact Loss not calculated. Management method Procurement analysis, market research and industry surveys continue to be the applied management method for this potential risk Cost of management 50000 Comment Membership of research institutes and survey reports - Once off fee per annum ZAR50k

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business? Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business. Identifier Opp1 Where in the value chain does the opportunity occur?

Supply Chain Opportunity type Products and services Primary climate-related opportunity driver Other Type of financial impact driver Other, please specify (Premium price opportunities) Company- specific description Due to rainfall and weather changes, potential for new farmlands would be presented as an opportunity for Tiger to assist budding farmers and secure raw material supply. Furthermore, more environmentally friendly methods could be used to ensure greener products are produced. This could add a strategic advantage to the business and command a premium price point. Time horizon Long-term Likelihood More likely than not Magnitude of impact Medium-high Potential financial impact 0 Explanation of financial impact The financial implications of changes in global temperature are difficult to quantify as the implications are wide-ranging and differ from region-to-region. Tiger Brands believe that enhancing employee's skills is a key method to ensure opportunities are recognised and implemented; going forward the company will be investing in in-house training. Strategy to realize opportunity A key component of Tiger Brands procurement policy is to secure supply requirements from sustainable sources. In order to achieve this, Tiger Brands have built strong partnerships with key growers. Tiger Brands aim to maintain these partnerships while continuously analysing climate change developments to ensure access to prosperous and sustainable raw material suppliers. Cost to realize opportunity 0 Comment

In the short term, costs to change agricultural processes and systems need to be incurred. This must be aligned with the environmental goals and aspirations of the business. Long term, there should be a return on this investment by means of increased throughput of fresh produce.

Identifier Opp2 Where in the value chain does the opportunity occur? Direct operations Opportunity type Products and services Primary climate-related opportunity driver Other Type of financial impact driver Other, please specify (Increased demand for existing products/s) Company- specific description Changes in average global temperature impact agriculture, market conditions and customer requirements. A decline in agriculture conditions in vulnerable parts of Africa could increase Tiger Brands exports to these areas. The effects of changes in global temperatures are difficult to quantify as regions are impacted differently, while crop yield may decrease in one region, it could increase in other. Time horizon Long-term Likelihood More likely than not Magnitude of impact Medium-high Potential financial impact 0 Explanation of financial impact The financial implications of changes in global temperature are difficult to quantify as the implications are wide-ranging and differ from region-to-region. Tiger Brands believe that enhancing employee's skills is a key method to ensure opportunities are recognised and implemented; going forward the company will be investing in in-house training. Strategy to realize opportunity

Tiger Brands are aware of the vulnerability of the agricultural sector in relation to climate change. Changes in global temperature poses both risks and opportunities. Tiger Brands engage with suppliers to ensure risks are mitigated and opportunities are investigated. Tiger Brands Academy manages in-house training for the organisation. Employees are also further developed using our existing service providers and also looking at customised courses by institutions like the NCPC. Management methods also include the implementation of energy reduction targets which will aid in improving production efficiencies and in turn increased product supply. The introduction of focused risk management systems looking at climate change issues will ensure that this criteria is embedded into decision making processes and strategy within the Tiger group. This will further ensure success of the business and growth for shareholders. Cost to realize opportunity 0 Comment In the short term, costs to changes production processes and systems need to be incurred. This must be aligned with the environmental goals and aspirations of the business. Long term, there should be a return on this investment by means of increased production throughput.

Identifier Opp3 Where in the value chain does the opportunity occur? Supply Chain Opportunity type Resilience Primary climate-related opportunity driver Resource substitutes/diversification Type of financial impact driver Other, please specify (Induced changes in natural resources ) Company- specific description Induced changes in natural resources could present opportunities for Tiger Brands to develop new products as certain raw materials become more abundant or scarce. New products/business services Time horizon Long-term Likelihood More likely than not Magnitude of impact

Medium Potential financial impact 0 Explanation of financial impact The financial implications of induced changes in natural resources are difficult to quantify. The development of new products will require significant capital investment in the research and development phase, and the implementation phase. Strategy to realize opportunity Tiger Brands sustainability committee keep up to date with climate change developments and changes in the agricultural landscape. Cost to realize opportunity 0 Comment Current costs of management are absorbed internally by the sustainability committee. Costs of new product development will require significant capital which will only be assessed on a need-to-know basis.

Identifier Opp4 Where in the value chain does the opportunity occur? Direct operations Opportunity type Markets Primary climate-related opportunity driver Access to new markets Type of financial impact driver Other, please specify (Reputation) Company- specific description Tiger Brands reputation is enhanced by taking an active role in the transition to a low carbon economy and ensuring that the company operates within the parameters of sustainable business practices and good corporate governance. Businesses with a sound reputation in relation to environmental issues are seen as responsible producers. These organisations shall ensure that they retain and even grow their market share. Tiger Brands are aware that ensuring sound and leading environmental practices is key to maintaining a market leader position. Financial performance in the long term would depend and green choices now. Tiger Brands have a number of strategic food security partnerships. Time horizon

Medium-term Likelihood Virtually certain Magnitude of impact High Potential financial impact 1000000 Explanation of financial impact A reputable company is likely to reap financial benefits, including possible increase in market share and investment opportunities. The cost to maintain the company's reputation is broad as costs fall within different sectors of the business. Strategy to realize opportunity Tiger Brands aims to be a climate change leader in its industry. The company has engaged in a number of activities to build and manage its reputation; these include but are not limited to: - Developing an annual integrated report, which includes sections on sustainability and good governance. - Responding to the CDP - Company Policies (e.g. preferential procurement, CSI, environmental) - Member to business groups such as Business Unity South Africa (BUSA) and The South African Chamber of Commerce & Industry (SACCI) - Engaging with local communities and implementing a number of CSI projects Cost to realize opportunity 1500000 Comment The cost of management is wide-ranging.

Identifier Opp5 Where in the value chain does the opportunity occur? Direct operations Opportunity type Products and services Primary climate-related opportunity driver Other Type of financial impact driver Other, please specify (Increased demand for existing products/s) Company- specific description

Consumers are directly affected by the economic conditions of a country. This results in consumers becoming more demanding and taking an active role in ensuring responsible purchasing of goods and value offerings. This is forcing companies to produce greener goods to meet requirements and ensure market position and sustainability of the business. Tiger Brands embraces these changes and aims to create a competitive edge in the market. Time horizon Medium-term Likelihood Virtually certain Magnitude of impact High Potential financial impact 1500000 Explanation of financial impact Tiger Brands have implemented a number of initiatives to ensure business practices are environmentally responsible. The company aims to take advantages of the green goods markets by ensuring products are sustainable throughout the supply chain. The financial implications are wide ranging as they extend further than the operational control of the organisation. Strategy to realize opportunity To ensure products are sustainable, to keep up with consumer demand; Tiger Brands have implemented an Environmental Strategy which focuses on the following key areas: - Energy - Air Emissions - Water - Packaging - Waste Tiger Brands engage with suppliers to ensure they are environmentally responsible and assist is enhancing suppliers sustainability practices and crop yields. Tiger Brands are investigating conducting LCA's to gain an enhanced understanding of a products value chain. Cost to realize opportunity 1000000 Comment The cost of management includes the cost of implementing the environmental strategy, the agricultural teams engagements, LCA’s on key products, etc

C2.5

(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Impact Description

Products and services Impacted Short supply of required input material - also lack of operation excellence performance due to compromised quality of utilities performance

Supply chain and/or value chain Impacted Supplier reliability

Adaptation and mitigation activities

Impacted for some suppliers, facilities, or product lines

Farming - crop rotation to reduce soil erosion; Reduced us of pesticides and fertilizers; Lack of water for irrigation and agro-processing

Investment in R&D We have not identified any risks or opportunities

Renovation and Innovation process - alternatives for packaging and working with suppliers to improve packaging durability, alternatives that are environmentally. friendly, etc.

Operations Impacted Resource availability

Other, please specify Not yet impacted SME and Enterprise development small holdings

C2.6

(C2.6) Describe where and how the identified risks and opportunities have factored into your financial planning process.

Relevance Description

Revenues Impacted Profitability, adaptability funding, sourcing strategy, etc.

Operating costs Impacted ROI and RONA impact

Capital expenditures / capital allocation Impacted CAPEX spend and delivery on growth strategy with profitable margins realised

Acquisitions and divestments Not evaluated No Comment

Access to capital Not evaluated No Comment

Assets Not evaluated No Comment

Liabilities Not evaluated No Comment

Other Not evaluated To be determined

C3. Business Strategy

C3.1

(C3.1) Are climate-related issues integrated into your business strategy? Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy? Yes, qualitative and quantitative

C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b)

(C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b) Indicate whether your organization has developed a low-carbon transition plan to support the long-term business strategy. In development, we plan to complete it within the next 2 years

C3.1c

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy. I. The Chief Supply Chain Officer is accountable for the environmental component of the organisation’s corporate sustainability. The Manufacturing Excellence Executive is responsible for the environmental strategy development with input from appointed committee members (the Risk and Sustainability Committee). Through a team effort with the Supply Chain Leadership team, the Manufacturing Excellence manager is responsible for the implementation of the environmental strategy, raising awareness and communicating the strategy to the broader business and to keep key stakeholders informed of strategy implementation progress. Where necessary the suppliers are kept informed of the initiatives being undertaken in order to successfully achieve the set milestones as defined by the strategy. Climate change poses both risks and opportunities to all parts of the business. Tiger believes in playing its part in increasing energy efficiency and reducing carbon emissions. Tiger’s environmental strategy has been influenced by good governance; following the requirements of King III and integrated reporting, as well as ensuring inclusion on the JSE SRI index, which is important to the company. II. Tiger Brands current focus areas are on reducing the organisation’s operational water footprint, implementing a group-wide energy efficiency and carbon management plan, and the reduction of waste (including a current study for alternative use of the waste to generate renewable energy). These priorities are driven by rising costs, the regulatory environment, and stakeholder preferences. Sustainability is seen as a key factor to ensure long term business growth and retention of current market share. This is key to ensure that investors are kept satisfied and customer expectations are being met. Ensuring an integrated triple bottom line approach is critical to Tiger's long term sustainable growth. Tiger has developed several partnerships with NGO's where the company receives general advice, as well as engaging on particular issues.

III. Priority targets have been agreed upon and are being measured across the group. This would assist the group to align their efforts and responses to climate change. Climate change risks have been incorporated into the risk framework and are mitigated by using the aforementioned business processes. This is currently headed by the Group Supply Chain Executive and a subcommittee of the board. These measures are seen as critical and key to delivering a sound performance by reducing operational expenses, improving efficiencies, and delivering products that contribute to a low carbon economy. IV. In the long term, the Risk and Sustainability committee will provide assurance to the board that key sustainability issues are identified and addressed. Some of the long term issues being addressed as part of the strategy are the availability of water and future energy supply. Climate change issues affect Tiger Brand’s long term business strategy, these include increased GHG’s contributing to global warming, increased intensity and frequency of extreme natural events impacting trade routes, products supply chain and company owned infrastructure and change in rainfall patterns affecting water availability and crop yields. This influences long term business decisions when considering relocating plants and developing increased capacity at existing sites. Tiger acknowledges that carbon tax, emissions trading and removing government subsidies will all result in the cost of fossil fuels increasing which ultimately affects the company’s bottom line profits. V. Tiger’s environmental strategy provides the company with a number of opportunities. This includes highlighting and decreasing supply chain inefficiencies, reducing operating costs and therefore the cost of product manufacturing. Sustainable business practices allow Tiger Brands to become a sustainability leader in the industry; enhancing the company’s reputation and meeting growing consumer and investor expectations. Reduced operating costs and an improved environmentally sustainable brand is a strategic advantage for the company thus being an additional enabler to sustainable business growth. Raw material shortages due to climatic changes also have an influence on strategies towards procurement initiatives. Alternative suppliers for raw materials have had to be identified to ensure sustainable practices are followed and meet market demands. The business has gained strategic advantage over competitors in the following areas: - Procuring of some of the raw materials at a cheaper price due to change in purchase location - A reduction in utility usage at a site level, resulting in decreased GHG emissions. - Light weighting of packaging material has not only reduced the waste footprint impact by our consumers but also significantly decreased business expenditure on packaging requirements. VI. The key areas of the environmental strategy aim at positioning Tiger as an environmentally sustainable leader in the industry by reducing consumption and improving business practices. The focus on energy is directly relevant to reducing carbon emissions for the business. The strategy provides a platform for highlighting and managing climate change related risks and opportunities. A number of

climate change related aspects have influenced the implementation and growth of the strategy, including increased GHG emissions, water and raw material availability, infrastructure damage, etc. Increased GHG’s contributing to global warming have resulted in countries and organisation’s taking action to reduce their GHG impact. As a primarily South African based organisation Tiger is aware of the environmental impact of high electricity consumption due to the fact that Eskom’s grid supplied electricity is largely coal generated. Climate change and environmental related concerns have been integrated into current business processes which relate to the manufacture of food, home, personal, and baby care products. The need for adaptation and regulatory changes due to climate change has necessitated the integration of the following key areas into the Tiger Brands strategy: Energy consumption – Find alternative energy sources due to load shedding; Carbon Emissions - Expected introduction of carbon tax and the Air Emission Act which requires companies to meet legal requirements by 2019; Water utilization – Water scarcity in the Western Cape Waste management practices & packaging contribution to waste generation – Introduction of the Waste Act

C3.1d

(C3.1d) Provide details of your organization’s use of climate-related scenario analysis. Climate-related scenarios Details

2DS

We try to identify and quantify the disciplines across the business (extending to other areas outside of the organization) in order to understand any new categories of risk over extended period of time e.g. with our internal agriculturists who work with the farmers supplying the company. We undertake the climate scenario analysis as it allows for us to plan for operations that are flexible for a range of futures, it also gives us a better understanding of the strategic implications of climate related risks and opportunities. Furthermore, the information is used for stakeholder engagement around how the company will adapt to water risks and climate change impact - Plans can then be developed to ensure that the business is ready for the transition.

DDPP

We try to identify and quantify the disciplines across the business (extending to other areas outside of the organization) in order to understand any new categories of risk over extended period of time e.g. with our internal agriculturists who work with the farmers supplying the company. We undertake the climate scenario analysis as it allows for us to plan for operations that are flexible for a range of futures, it also gives us a better understanding of the strategic implications of climate related risks and opportunities. Furthermore, the information is used for stakeholder engagement around how the company will adapt to water risks and climate change impact - Plans can then be developed to ensure that the business is ready for the transition.

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year? Both absolute and intensity targets

C4.1a

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets. Target reference number Abs 1 Scope Scope 3: Upstream transportation & distribution % emissions in Scope 100 % reduction from base year 5 Base year 2016 Start year 2017 Base year emissions covered by target (metric tons CO2e) Target year 2018 Is this a science-based target? No, but we anticipate setting one in the next 2 years % achieved (emissions) Target status Underway Please explain The target is made in conjunction with our logistics service providers - we track performance quarterly with trends presented to the RISK & SET Committee.

C4.1b

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s). Target reference number Int 1 Scope Scope 1 % emissions in Scope 100 % reduction from baseline year 5 Metric Metric tons CO2e per metric ton of product Base year 2016 Start year 2017 Normalized baseline year emissions covered by target (metric tons CO2e) 0.1055 Target year 2018 Is this a science-based target? No, but we anticipate setting one in the next 2 years % achieved (emissions) Target status Underway Please explain Tiger Brands uses a year on year rolling target. Our aim is to reduce Scope 1 intensity by 5% per annum. We have started engaging carbon footprint certification bodies to assist with setting the science based target. % change anticipated in absolute Scope 1+2 emissions

% change anticipated in absolute Scope 3 emissions

Target reference number Int 2 Scope Scope 1+2 (location-based) % emissions in Scope 100 % reduction from baseline year 5 Metric Metric tons CO2e per metric ton of product Base year 2016 Start year 2017 Normalized baseline year emissions covered by target (metric tons CO2e) 0.133 Target year 2018 Is this a science-based target? No, but we anticipate setting one in the next 2 years % achieved (emissions) Target status Underway Please explain Tiger Brands uses a year on year rolling target. Our aim is to reduce Scope 2 intensity by 5% per annum. We have started engaging carbon footprint certification bodies to assist with setting the science based target. % change anticipated in absolute Scope 1+2 emissions % change anticipated in absolute Scope 3 emissions

C4.2

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases. Yes

C4.3a

(C4.3a) Identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings.

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 25

To be implemented*

Implementation commenced*

Implemented* 40 583668.31

Not to be implemented

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below. Activity type Energy efficiency: Processes Description of activity Process optimization Estimated annual CO2e savings (metric tonnes CO2e) 52 Scope

Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 50998 Investment required (unit currency – as specified in CC0.4) 55584 Payback period 1-3 years Estimated lifetime of the initiative >30 years Comment The King Foods Potchefstroom site was able to realise CO2e savings through the installation of VSD's on four KKP kiln fans.

Activity type Energy efficiency: Processes Description of activity Other, please specify (Reduction in Electricity) Estimated annual CO2e savings (metric tonnes CO2e) 1106 Scope Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 656047 Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative Ongoing Comment

Tiger Brands has focused efforts on reducing electricity usage at the Milling Randfontein facility due to the site having the highest kwh/annum recording. Extensive investments were made to upgrade the maize milling technology and removal of redundant equipment. Through this initiative the site was able to significantly reduce the carbon footprint.

Activity type Other, please specify (Behavioral change) Description of activity <Not Applicable> Estimated annual CO2e savings (metric tonnes CO2e) 39 Scope Scope 1 Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 166515 Investment required (unit currency – as specified in CC0.4) Payback period <1 year Estimated lifetime of the initiative Ongoing Comment The Milling Randfontein site site launched a continuous improvement initiative whereby all forklift LPG cylinders are weighed to ensure that the cylinders are empty before sending for refill.

Activity type Other, please specify (Power Factor correction upgrade) Description of activity <Not Applicable> Estimated annual CO2e savings (metric tonnes CO2e) 1027 Scope

Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 589932 Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative Ongoing Comment The Milling Randfontein conducted a power factor correction upgrade programme.

Activity type Energy efficiency: Building fabric Description of activity Other, please specify (replacement of the Hi-bay lights ) Estimated annual CO2e savings (metric tonnes CO2e) 166 Scope Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 103554 Investment required (unit currency – as specified in CC0.4) Payback period <1 year Estimated lifetime of the initiative 6-10 years Comment The Miiling Randfontein site initiated the replacement of the Hi-bay lights over a rolling two year period.

Activity type Energy efficiency: Processes Description of activity Compressed air Estimated annual CO2e savings (metric tonnes CO2e) 1523 Scope Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 336166 Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative >30 years Comment The Snacks and Treats Chocolate site was able to realise CO2e savings through the installation of VSD's on the following equipment: Elgi 1 compressor Elgi 2 compressor Champion compressor Compare compressor Refiner 1 Pre-refiner.

Activity type Energy efficiency: Processes Description of activity Heat recovery Estimated annual CO2e savings (metric tonnes CO2e) 103 Scope Scope 2 (location-based) Voluntary/Mandatory Voluntary

Annual monetary savings (unit currency – as specified in CC0.4) 87822 Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative >30 years Comment The Snacks and Treats Chocolate site invested in the installation of a heat pump.

Activity type Energy efficiency: Processes Description of activity Heat recovery Estimated annual CO2e savings (metric tonnes CO2e) 10122 Scope Scope 1 Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in CC0.4) 440000 Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative >30 years Comment The Snacks and Treats, Mallows and Jellies site installed an Economiser at the boiler. Feed water temp increased from 50 to 75 deg resulting in a decrease of Natural Gas consumption.

Activity type

Other, please specify (System accreditation ISO 14001: 2015) Description of activity <Not Applicable> Estimated annual CO2e savings (metric tonnes CO2e) 5000 Scope Scope 2 (market-based) Voluntary/Mandatory Mandatory Annual monetary savings (unit currency – as specified in CC0.4) 65000 Investment required (unit currency – as specified in CC0.4) 2500 Payback period <1 year Estimated lifetime of the initiative Ongoing Comment Tiger Brands have initiated the process of acquiring ISO 14001:2015 accreditation. This process sets out the criteria for an environmental management system. Standards in the family focus on specific approaches such as audits, communications, labeling and life cycle analysis, as well as environmental challenges such as climate change.

Activity type Other, please specify (Product Design) Description of activity <Not Applicable> Estimated annual CO2e savings (metric tonnes CO2e) 791 Scope Scope 2 (location-based) Scope 3 Voluntary/Mandatory

Voluntary Annual monetary savings (unit currency – as specified in CC0.4) Investment required (unit currency – as specified in CC0.4) Payback period 1-3 years Estimated lifetime of the initiative Ongoing Comment Tiger Brands has invested in utilising minimal material for packaging our products. Lightweight packaging that combines Low environmental impact with consumer convenience has been implanted. Saving raw material saves energy during production, transport and waste handling.

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities? Method Comment

Internal finance mechanisms Current internal finance mechanisms are used for all types of Capex related projects

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions? No

C5. Emissions methodology

C5.1

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2). Scope 1 Base year start January 1 2016

Base year end December 31 2016 Base year emissions (metric tons CO2e) 263746 Comment The data provided above is for the all tehe facilities in Tiger Brands, these include Beverages, Culinary, HPCB, Snacks and Treats, VAMP, Albany Bakeries, Jungle, King Food, Mills, Pasta, Tastic, International (Chococam, Davita, Haco and Langerberg and Ashto Foods). Scope 2 (location-based) Base year start January 1 2016 Base year end December 31 2016 Base year emissions (metric tons CO2e) 323261 Comment The data provided above is for the all tehe facilities in Tiger Brands, these include Beverages, Culinary, HPCB, Snacks and Treats, VAMP, Albany Bakeries, Jungle, King Food, Mills, Pasta, Tastic, International (Chococam, Davita, Haco and Langerberg and Ashto Foods). Scope 2 (market-based) Base year start Base year end Base year emissions (metric tons CO2e) Comment NOT INCLUDED

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

C6. Emissions data

C6.1

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e? Row 1 Gross global Scope 1 emissions (metric tons CO2e) 268779 End-year of reporting period <Not Applicable> Comment A slight increase was noted from last year date of 263 746.

C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions. Row 1 Scope 2, location-based We are reporting a Scope 2, location-based figure Scope 2, market-based We have operations where we are able to access electricity supplier emission factors or residual emissions factors, but are unable to report a Scope 2, market-based figure Comment We calculate this scope based on the Eskom Integrated Annual Report (2017) emissions factor for Electricity.

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e? Row 1 Scope 2, location-based 308643 Scope 2, market-based (if applicable) <Not Applicable> End-year of reporting period <Not Applicable> Comment

A slight decrease was noted from last year date of 323 261.

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure? No

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions. Purchased goods and services Evaluation status Relevant, not yet calculated Metric tonnes CO2e Emissions calculation methodology Not conducted Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation As a food company / convertor we use a large volume of packaging materials and raw materials to convert our products. We therefore depend on a host of suppliers to produce these input goods. All these stages results in a carbon footprint. We currently are investigating ways of tracking these footprints for our business. this is important and need to be addressed in the near future. LCA on cocoa beans perfomed, the cocoa production makes the largest contribution to the environmental impacts of eutrophication, ozone layer depletion, freshwater aquatic eco-toxicity, human toxicity, and terrestrial eco-toxicity, with average contributions greater than 96%. The analysis revealed that production and use of fertilizers and pesticides were a major cause of the environmental burdens in the cocoa production stage. Ozone layer depletion is caused by the emission of halogens and CFCs during the production of pesticides. Eutrophication is mainly caused by leakage of nutrients during cultivation and emission of phosphates from the production of phosphorus fertilizers. For all the three toxicity categories the main contributors are heavy metals content in phosphorus fertilizers and leakage of pesticides Capital goods Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology

Not Relevant Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation As South Africa's Largest Food Manufacture we do procure new capital goods namely Equipment, typically these equipment’s will come from vast amounts of suppliers and we have not yet looked into partnering up with our suppliers to track cradle to gate emissions factors. Fuel-and-energy-related activities (not included in Scope 1 or 2) Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology No Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation The total Energy and Fuel associated with the manufacturing operations has been covered in Scope 1 and scope 2 emissions reporting. Upstream transportation and distribution Evaluation status Relevant, calculated Metric tonnes CO2e Emissions calculation methodology No Comment Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation We currently have a 3rd party transport company for our distribution and have engaged them since 2016 for mapping out the total distance travelled for the services they provide. The focus areas in 70% of the Inbound and Outbound logistics services. Waste generated in operations Evaluation status Relevant, calculated Metric tonnes CO2e 1602 Emissions calculation methodology

Data in relation to waste sent to landfill form the various operations is collated. A defra emissions factor is then used to determine the equivalent CO2 emissions. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Explanation Tiger Brands currently has various 3rd party waste management companies that remove waste from our sites. We are working towards obtaining supplier specific emission data. Business travel Evaluation status Relevant, calculated Metric tonnes CO2e 2802 Emissions calculation methodology Tiger Brands Scope 3 business flights are recorded by the company’s travel agents. Percentage of emissions calculated using data obtained from suppliers or value chain partners 100 Explanation This value consists of air travel by Tiger Brands employees Employee commuting Evaluation status Relevant, not yet calculated Metric tonnes CO2e Emissions calculation methodology Not indicated Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Tiger Brands as a large FMCG business employs a large number of employees to conduct their business. They commute daily to our facilities and offices resulting in carbon emissions. Upstream leased assets Evaluation status Relevant, not yet calculated Metric tonnes CO2e

Emissions calculation methodology Not done Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Tiger has no leased assets that may have a direct or indirect carbon footprint. This is important and needs to be addressed. Downstream transportation and distribution Evaluation status Relevant, not yet calculated Metric tonnes CO2e Emissions calculation methodology Not Included Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation We do not have insight into logistics from our distributions centres as there are vast amount of companies we supply with goods. Processing of sold products Evaluation status Relevant, calculated Metric tonnes CO2e Emissions calculation methodology Not Included Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Tiger products are at the final; stage prior to be consumed. No further manufacturing or conversion would be required. The foods or products that require processing after the FG is based on how the consumer utilises the product. The work undertaken has been for minimal portfolios of our products and not the full product listing Use of sold products Evaluation status Relevant, calculated Metric tonnes CO2e Emissions calculation methodology Not Included Percentage of emissions calculated using data obtained from suppliers or value chain partners

Explanation Packaging forms a large part of our sold product when used and influencing consumer behaviour can be difficult, however working to influence consumer behaviour and recycling would be beneficial End of life treatment of sold products Evaluation status Relevant, calculated Metric tonnes CO2e Emissions calculation methodology Not included Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation As a FMCG business as indicated above we have a host of packaging material. In turn we generate a lots of waste directly and indirectly. In most cases product waste is salvaged and sold as animal feed but packaging waste is still generated. We strive to manage the waste streams to reduce waste to land fill sites by in-house waste segregation programmes. This is an import contributor as a food manufacturer and we need to address and measure these impacts. Downstream leased assets Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology Not Calculated Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Tiger Brands has no leased asset down stream. Franchises Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology Not Calc. Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation

Not applicable to Tiger Brands Investments Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology Not Calc. Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Not applicable to Tiger Brands. Other (upstream) Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology Not Calc. Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Not applicable to Tiger Brands. Other (downstream) Evaluation status Not relevant, explanation provided Metric tonnes CO2e Emissions calculation methodology Not Relevant Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Not applicable to Tiger Brands.

C-AC6.6/C-FB6.6/C-PF6.6

(C-AC6.6/C-FB6.6/C-PF6.6) Can you breakdown your Scope 3 emissions by relevant business activity areas?

No

C-AC6.6b/C-FB6.6b/C-PF6.6b

(C-AC6.6b/C-FB6.6b/C-PF6.6b) Why can you not report your Scope 3 emissions by business activity area? Row 1 Primary reason Insufficient data on operations Please explain Not detailed measures in all areas to be able to break it down plus validated accurate data for this process

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? No

C-AC6.8/C-FB6.8/C-PF6.8

(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations relevant to your current CDP climate change disclosure? Don't know

C-AC6.9/C-FB6.9/C-PF6.9

(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions for each commodity reported as significant to your business in C-AC0.7/FB0.7/PF0.7? Agricultural commodities Sugar Do you collect or calculate GHG emissions for this commodity? No Please explain Out of scope.

Agricultural commodities Wheat

Do you collect or calculate GHG emissions for this commodity? No Please explain Out of scope.

C6.10

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business operations. Intensity figure 19 Metric numerator (Gross global combined Scope 1 and 2 emissions) 31834431 Metric denominator metric ton of product Metric denominator: Unit total 2545995 Scope 2 figure used Location-based % change from previous year 0.31 Direction of change Increased Reason for change Metric tonnes CO2e per unit R' Million revenue. The increase in Scope 1 and 2 emissions.

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization have greenhouse gas emissions other than carbon dioxide?

No

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region. Country/Region Scope 1 emissions (metric tons CO2e)

South Africa 266818

Cameroon 1840

Kenya 121

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide. By business division By facility

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Business division

Scope 1 emissions (metric ton CO2e)

Consumer. This division consist of the following manufacturing facilities: • Beverages • Culinary • HPCB • Snacks & Treats • VAMP 157163

Grains. This division consist of the following manufacturing facilities: • Albany • Jungle • King Food • Mills • Pasta • Tastic 81873

International. This division consist of the following manufacturing facilities: • Chococam • Davita • Haco • Langerberg and Ashton Foods 29743

C7.3b

(C7.3b) Break down your total gross global Scope 1 emissions by business facility.

Facility

Scope 1 emissions (metric tons CO2e) Latitude Longitude

Albany Bellville 5749 -33.924754 18.661036

Albany Germiston 9944 -26.217557 28.144175

Albany Maitland 1721 -29.925861 30.975039

Albany Margate 1813 -30.851719 30.37974

Albany Mobeni 3792 -29.5971 30.41127

Albany Pietermaritzburg 8640 -33.92641 18.49088

Albany Pretoria 9167 -26.82529 27.83247

Albany Randfontein 4542 -26.495982 29.215838

Albany Sasolburg 3320 -26.22 28.29

Albany Secunda 4662 4.038893 9.731628

Albany Virginia 372 27.9784 27.0264

Albany Manna 606 26.093611 28.00639

Chococam Douala 1840 -33.76528 18.96556

Culinary Jam Paarl 5937 -31.55486 18.34676

Culinary Boksburg 57132 -26.165157 27.710828

Culinary Lutzville 6732 -24.984 29.28734

Culinary Marble Hall 140 -25.723467 28.312979

Culinary Musina 18946 -22.36 30.03

Culinary Peanut Butter 1159 -26.165157 27.710828

Davita Crown Mines 0 -26.219954 27.999726

Enterprise Factory Germiston 7860 -26.216116 28.177045

Enterprise Factory Olifantsfontein 13740 -25.96751 28.23643

Enterprise Factory Polokwane 11872 -23.783853 29.509716

Haco 121 -1.242672 36.868561

Facility

Scope 1 emissions (metric tons CO2e) Latitude Longitude

HPCB Isando 924 -26.13915 28.20068

JBF Ndabeni 78 -33.93 18.5

Jungle Maitland 2802 -33.926385 18.487971

King Food Potchefstroom 21184 -26.71453 27.097048

L&AF Ashton West/ Ashton East 27782 -33.892512 18.630438

Milling Pietermaritzburg 115 -33.834813 20.052716

Milling Bellvile 174 -27.992697 27.016595

Milling Henneman 121 -29.596794 30.406077

Milling Randfontein 272 -26.165157 27.710828

Pasta Isando 2646 -26.14389 28.20716

S,T&B Roodekop 16607 -26.302204 28.192286

S,T&B Candy & Liquorice 12411 -29.940135 30.959193

S,T&B Chocolate 0 -29.935503 30.976399

S,T&B Mallows & Jellies 3624 -29.795513 30.829674

Tastic Rice Mobeni 232 -29.930915

30.964084

Carbon Data Scope 1.xlsx Carbon Data Scope 1 2 3.xlsx

C-AC7.4/C-FB7.4/C-PF7.4

(C-AC7.4/C-FB7.4/C-PF7.4) Do you include emissions pertaining to your business activity(ies) in your direct operations as part of your global gross Scope 1 figure? Yes

C-AC7.4b/C-FB7.4b/C-PF7.4b

(C-AC7.4b/C-FB7.4b/C-PF7.4b) Report the Scope 1 emissions pertaining to your business activity(ies) and explain any exclusions. If applicable, disaggregate your agricultural/forestry by GHG emissions category. Activity Processing/Manufacturing Emissions category <Not Applicable> Emissions (metric tons CO2e) 583668 Methodology Default emissions factor Please explain Exclusion of farming / agricultural areas - part of sourcing.

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tons CO2e)

Scope 2, market-based (metric tons CO2e)

Purchased and consumed electricity, heat, steam or cooling (MWh)

Purchased and consumed low-carbon electricity, heat, steam or cooling accounted in market-based approach (MWh)

South Africa 307091 287854 0

Cameroon 1325 627000 0

Kenya 227 1033693 0

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide. By business division By facility

C7.6a

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Business division

Scope 2, location-based emissions (metric tons CO2e)

Scope 2, market-based emissions (metric tons CO2e)

Consumer. This division consist of the following manufacturing facilities: • Beverages • Culinary • HPCB • Snacks & Treats • VAMP 131725

Grains. This division consist of the following manufacturing facilities: • Albany • Jungle • King Food • Mills • Pasta • Tastic 157406

International. This division consist of the following manufacturing facilities: • Chococam • Davita • Haco • Langerberg and Ashton Foods 19512

C7.6b

(C7.6b) Break down your total gross global Scope 2 emissions by business facility.

Facility Scope 2 location-based emissions (metric tons CO2e)

Scope 2, market-based emissions (metric tons CO2e)

Albany Bellville 5170

Albany Germiston 13182

Albany Maitland 2595

Albany Margate 2473

Albany Mobeni 6839

Albany Pietermaritzburg 7994

Albany Pretoria 7076

Albany Randfontein 4945

Albany Sasolburg 2406

Albany Secunda 4516

Albany Virginia 662

Albany Manna 588

Chococam Douala 1325

Culinary Jam Paarl 4643

Facility Scope 2 location-based emissions (metric tons CO2e)

Scope 2, market-based emissions (metric tons CO2e)

Culinary Boksburg 17881

Culinary Lutzville 1757

Culinary Marble Hall 532

Culinary Musina 2094

Culinary Peanut Butter 846

Davita Crown Mines 2203

Enterprise Factory Germiston 16614

Enterprise Factory Olifantsfontein 8957

Enterprise Factory Polokwane 12086

Haco 227

HPCB Isando 5198

JBF Ndabeni 5071

Jungle Maitland 5926

King Foods Potchefstroom 10278

L&AF Ashton West/ Ashton East 15757

Milling Pietermaritzburg 18793

Milling Bellvile 6336

Milling Henneman 18054

Milling Randfontein 23333

Pasta Isando 12212

S,T&B Roodekop 8568

S,T&B Candy & Liquorice 12804

S,T&B Chocolate 13739

S,T&B Mallows & Jellies 20935

Tastic Rice Mobeni 4609

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year? Increased

C7.9a

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.

Change in emissions (metric tons CO2e)

Direction of change

Emissions value (percentage)

Please explain calculation

Change in renewable energy consumption 0 No change None

Other emissions reduction activities 0 No change None

Divestment 0 No change None

Acquisitions 0 No change None

Mergers 0 No change None

Change in output 0 No change None

Change in methodology 0 No change None

Change in boundary 0 No change None

Change in physical operating conditions 0 No change None

Unidentified 0 No change None

Other 0 No change None

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure? Location-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy? More than 5% but less than or equal to 10%

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity Yes

Consumption of purchased or acquired heat Yes

Consumption of purchased or acquired steam Yes

Consumption of purchased or acquired cooling Yes

Generation of electricity, heat, steam, or cooling Yes

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value

MWh from renewable sources

MWh from non-renewable sources Total MWh

Consumption of fuel (excluding feedstock) Please select 0 0 945362.21

Consumption of purchased or acquired electricity <Not Applicable> 0 0 310879.21

Consumption of purchased or acquired heat <Not Applicable>

Consumption of purchased or acquired steam <Not Applicable> 0 0 17672.7

Consumption of purchased or acquired cooling <Not Applicable>

Consumption of self-generated non-fuel renewable energy <Not Applicable> <Not Applicable>

Heating value

MWh from renewable sources

MWh from non-renewable sources Total MWh

Total energy consumption <Not Applicable>

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of steam Yes

Consumption of fuel for the generation of cooling Yes

Consumption of fuel for co-generation or tri-generation Yes

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type. Fuels (excluding feedstocks) Coal Heating value Please select Total fuel MWh consumed by the organization 608072.2 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Natural Gas

Heating value Please select Total fuel MWh consumed by the organization 162572.28 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Liquefied Petroleum Gas (LPG) Heating value Please select Total fuel MWh consumed by the organization 15644.43 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Gas Oil Heating value Please select Total fuel MWh consumed by the organization 1784.8 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling

MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Other, please specify (Paraffin) Heating value Please select Total fuel MWh consumed by the organization 13595.12 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Other, please specify (Poly Fuel) Heating value Please select Total fuel MWh consumed by the organization 24483.22 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Petrol Heating value Please select Total fuel MWh consumed by the organization 4515.47

MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Diesel Heating value Please select Total fuel MWh consumed by the organization 95153.43 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

Fuels (excluding feedstocks) Other, please specify (LPG Transport) Heating value Please select Total fuel MWh consumed by the organization 19541.67 MWh fuel consumed for the self-generation of electricity MWh fuel consumed for self-generation of heat MWh fuel consumed for self-generation of steam MWh fuel consumed for self-generation of cooling MWh fuel consumed for self- cogeneration or self-trigeneration

C8.2d

(C8.2d) List the average emission factors of the fuels reported in C8.2c. Coal Emission factor 2458 Unit kg CO2e per metric ton Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Diesel Emission factor 3202 Unit kg CO2e per metric ton Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Gas Oil Emission factor 25 Unit kg CO2e per liter Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Liquefied Petroleum Gas (LPG) Emission factor 2991

Unit kg CO2e per metric ton Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Natural Gas Emission factor 56236 Unit kg CO2e per metric ton Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Petrol Emission factor 25 Unit kg CO2e per metric ton Emission factor source The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment None Other Emission factor 3167 Unit Please select Emission factor source Paraffin. The Greenhouse Gas Protocol: Emission Factors from Cross Sector Tools (2015) Comment

None.

C8.2e

(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year.

Total Gross generation (MWh)

Generation that is consumed by the organization (MWh)

Gross generation from renewable sources (MWh)

Generation from renewable sources that is consumed by the organization (MWh)

Electricity 310879.21 0 0 0

Heat

Steam 17672.7 0 0 0

Cooling

C8.2f

(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that were accounted for at a low-carbon emission factor in the market-based Scope 2 figure reported in C6.3. Basis for applying a low-carbon emission factor No purchases or generation of low-carbon electricity, heat, steam or cooling accounted with a low-carbon emission factor Low-carbon technology type <Not Applicable> MWh consumed associated with low-carbon electricity, heat, steam or cooling <Not Applicable> Emission factor (in units of metric tons CO2e per MWh) <Not Applicable> Comment Not comment.

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business. Description Waste Metric value 3444 Metric numerator Will calculate next year. Metric denominator (intensity metric only) Will calculate next year. % change from previous year Direction of change <Not Applicable> Please explain Will calculate next year.

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions and attach the relevant statements. Scope

Scope 1 Verification or assurance cycle in place Annual process Status in the current reporting year Underway but not complete for reporting year-previous statement of process attached Type of verification or assurance Third party verification/assurance underway Attach the statement Tiger Brands_CFA Verification Statement_V1.0_30072018.pdf Tiger Brands_CFA Verification Report_V1.0_30072018.pdf Page/ section reference Pages 4 to 13 Relevant standard Verification as part of Carbon Trust standard certification Proportion of reported emissions verified (%) 100

Scope Scope 2 location-based Verification or assurance cycle in place Biennial process Status in the current reporting year Underway but not complete for reporting year-previous statement of process attached Type of verification or assurance Third party verification/assurance underway Attach the statement Page/ section reference Pages 4 to 13 Attached. Relevant standard Verification as part of Carbon Trust standard certification Proportion of reported emissions verified (%) 70

C10.1b

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements. Scope Scope 3- at least one applicable category Verification or assurance cycle in place Annual process Status in the current reporting year Underway but not complete for reporting year – previous statement of process attached Attach the statement Page/section reference Pages 4 to 13 Relevant standard Verification as part of Carbon Trust standard certification

C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5? Yes

C10.2a

(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used? Disclosure module verification relates to Data verified Verification standard Please explain

C6. Emissions data

Product footprint verification

Verification as part of Carbon Trust standard certification

The life cycle analysis conducted for our key SKU e.g. Bread, KOO Beans, VAMP selected products, Chocolates, Cocoa, Purity variants in Jars, Sorghum Beer.

C11. Carbon pricing

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)? No, but we anticipate being regulated in the next three years

C11.1d

(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating? The carbon Tax Bill will be implemented from 1 January 2019. Tiger Brands will be looking at projects to reduce the carbon emissions produced at the facilities. The facilities are already budgeting the tax they will be liable to pay and this has been included in the new budget period. Tiger Brand will report on its emissions and has registered with the DEA.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period? No

C11.3

(C11.3) Does your organization use an internal price on carbon? Yes

C11.3a

(C11.3a) Provide details of how your organization uses an internal price on carbon. Objective for implementing an internal carbon price Navigate GHG regulations Change internal behavior Drive energy efficiency Drive low-carbon investment

Identify and seize low-carbon opportunities Supplier engagement GHG Scope Scope 1 Application The company has adopted the proposed worst case scenario of Carbon Tax to be introduced without applying any threshold to the R120.00 per ton of CO2 : i) Scope 1 ii) Tiger Brands rationale for employing a rate of R120.00 for the internal price of carbon is related to aligning with the fee initially set by the Government of South Africa. Discussions, between government and businesses, with regards to establishing an appropriate framework (Taxing) is currently in progress. Tiger Brands will continue to utilise the R120.00 rate until all concerns aligned to all parties (government and business) have been resolved. iii) R120.00 per ton of carbon emissions released is the rate that is charged to all Scope 1 emissions emitted from facilities within the borders of South Africa. iv) Variances in prices over time will be considered once the framework is formalised. v) Risk and Sustainability Committee Actual price(s) used (Currency /metric ton) 120 Variance of price(s) used Variances in prices over time will be considered once the framework is formalised. Type of internal carbon price Internal fee Impact & implication Carbon Tax could act as a barrier to industrial and commercial progress. A country which is particularly dependant on fossil-fuels for its generation of energy, it is believed that South African companies will find it difficult to influence reductions in emissions. Companies with carbon-intensive operations, products or supply chains are likely to be concerned about their ability to compete against lower carbon sector peers in South Africa, or against competitors in countries that do not price carbon yet. This could limit their ability to pass on some or all of the tax to business customers or consumers.

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues? Yes, our suppliers

Yes, our customers

C12.1a

(C12.1a) Provide details of your climate-related supplier engagement strategy. Type of engagement Other, please specify (Emissions Reduction Incentives) Details of engagement Please select % of suppliers by number 55 % total procurement spend (direct and indirect) 18 % Scope 3 emissions as reported in C6.5 25 Rationale for the coverage of your engagement Stakeholder, investor requirements, legislation updates & lobbying, etc. Impact of engagement, including measures of success This would active engagement on how to be compliant and also to look at ways of being innovative in our operations in order to better improve the current performance. A key one has also been the collaboration realised through CSIR, NBI, CGSA, SWPN, Govt. Relations, UNIDO and Manufacturing Circle with multiple external and global parties has been the most valuable in this fiscal year. Comment No Comment

C12.1b

(C12.1b) Give details of your climate-related engagement strategy with your customers. Type of engagement Collaboration & innovation Details of engagement Run a campaign to encourage innovation to reduce climate change impacts Size of engagement

% Scope 3 emissions as reported in C6.5 Please explain the rationale for selecting this group of customers and scope of engagement Understanding of customer expectations and how these can be met through production innovation, NPD Process input (consumer insight) Impact of engagement, including measures of success No Comment

C-AC12.2/C-FB12.2/C-PF12.2

(C-AC12.2/C-FB12.2/C-PF12.2) Do you encourage your suppliers to undertake any agricultural or forest management practices with climate change mitigation and/or adaptation benefits? No

C-AC12.2c/C-FB12.2c/C-PF12.2c

(C-AC12.2c/C-FB12.2c/C-PF12.2c) Why do you not encourage your suppliers to undertake any agricultural/forest management practices with climate change mitigation and/or adaptation benefits?

Primary reason Please explain

Row 1 Not an immediate business priority No comment

C12.3

(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following? Direct engagement with policy makers Trade associations

C12.3a

(C12.3a) On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate position Details of engagement Proposed legislative solution

Carbon tax

Support with minor exceptions To obtain the appropriate costing model for the carbon tax implications going forward.

Implementation of the Carbon Tax with exceptions due to a lack of clarity on the framework to be used.

Mandatory carbon reporting Support

To get organisations to voluntarily report on their carbon emissions based on the nature of their operations.

Further engagement between DEA, Business Organisations and Legal advisory boards on a suitable reporting framework.

Energy efficiency Support

The need to look at Energy Management / Efficiency projects being delivered from business units. Partnership with the CSIR -NCPC on the roll out of the RECP Programme at site level. Development and ongoing support by UNIDO for EnMS Programs in manufacturing / supply chain organisations.

Accept Energy Efficiency legislated initiatives

Other, please specify (Green Economy Document ) Support

To assist government with regards to setting up parameters that will promote a greener economy in South Africa Supported

Other, please specify (National Climate Action Plan) Support

To assist government in drafting a plan of action to mitigate all the risks associated with climate change Participative Associate Member

Other, please specify (Waste Act)

Support with minor exceptions

Pricing Strategy Amendment - To provide assistance with waste management in order to protect health and the environment by providing reasonable measures for the prevention of pollution and ecological degradation and for securing ecologically sustainable development

Ongoing engagement and support for changes pre-empted

Other, please specify (Pesticide Policy ) Support

To provide a solution or a Plan of Action in regards to mitigating risks involved with Pesticides which impact the farming aspect of the business. Accept

Other, please specify (Air Quality Act ) Support

To provide input on air quality regulation in order to protect the environment by providing reasonable measures for the prevention of pollution and ecological degradation and for securing ecologically sustainable development while promoting justifiable economic and social development; to provide for national norms and standards regulating air quality monitoring, management and control. Accept proposed changes

Adaptation or resilience Undecided

Looking at actions taken to counteract new or changing environmental challenges and reduce the vulnerability of human systems to the effects of climate change. Based on Accept

Focus of legislation

Corporate position Details of engagement Proposed legislative solution

Agriculture and the farming partnerships we have with the DAFF department, we are working on adjustments through climate planning as well as autonomous reactions by individuals and public bodies with the farmers and Govt. representatives. As Tiger Brands we are conscious that the policy implications of adaptation relate to the specific risks that climate change poses to an area or sector and the practical steps needed to reduce those risks. The environmental impact of increases in heavy rain, for example, will not affect settlements on higher ground in the same way as it does those on flood plains. Different adaptation, and policy, responses are therefore required for different areas.

C12.3b

(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership? Yes

C12.3c

(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation. Trade association Milling Association South Africa Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Framework for Crop Protection Regulatory Harmonization; How have you, or are you attempting to, influence the position? Yes - as an organisation we work closely with farmers to educate them on the need for crop rotation and how it helps to reduce impact to soil erosion

Trade association NBI Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position

To provide leadership to assist business in driving down GHG emissions and impacts of climate change. Be a thought leader with climate change. How have you, or are you attempting to, influence the position? We agree with the position and participate in debates and discussion sessions with NBI and other stakeholders to influence legislative policy and sector interpretations of the requirements.

Trade association MLFB Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Reduce GHG emissions by focusing on multi-layer plastics and technologies that can be developed to recycle and reduce multi-layer plastics that end up on landfills. How have you, or are you attempting to, influence the position? Tiger has been a founding member and as such has helped to develop the required vision and focus areas for the foundation

Trade association Manufacturing Circle Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Provide and create mitigation plans in regards to problems experienced through load and water shedding. Municipalities and business engagement is key to resolve issues collectively How have you, or are you attempting to, influence the position? Tiger has been a founding member and as such has helped to develop the required vision and focus areas for the foundation

Trade association SAAPA Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position To understand and provide risks within the agricultural space

How have you, or are you attempting to, influence the position? Provide solution and mitigation plans in relation to the agriculture space. To also understand what are the possible risks associated with climate change

Trade association BLSA Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Discuss issues and risks associated with climate change and how they impact the business. How have you, or are you attempting to, influence the position? Provide and discuss appropriate solutions which need businesses can adapt in their respective strategies to mitigate climate risks changes

Trade association CGCSA Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Discuss issues and risks associated with climate change and how it impacts the customer How have you, or are you attempting to, influence the position? Provide and discuss methods to reduce the costs associated to mitigate the increase of products for the end user.

Trade association BUSA Is your position on climate change consistent with theirs? Mixed Please explain the trade association’s position Discuss issues and risks which are involved in conducting business within the context of South Africa. As a result engage necessary stakeholder as a collective in terms of how we need to resolve them as a unit How have you, or are you attempting to, influence the position? Create and provide all necessary stakeholders with the appropriate solutions that can help businesses function well within South Africa

C12.3f

(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? The Tiger Brands environmental strategy is driven centrally to ensure alignment of approach and standardization across the group. This central function is responsible for linking direct and indirect activities that influence policy to the Tiger Brands climate change strategy. Further, the Risk and Sustainability board subcommittee is accountable for ensuring that all adopted policies are consistent with the climate change strategy. The central sustainability team review each business unit's strategy and progress against their particular strategy {including the initiatives undertaken to address initially identified gaps} and the scorecard on a quarterly basis to ensure that the strategy is implemented in a consistent way across the organisation.

C12.4

(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s). Publication Other, please specify (Mainstream, not used CDSB Framework) Status Complete Attach the document Content elements Risks & opportunities

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional and is not scored. None

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row 1 Risk and Environmental Sustainability Director Chief Sustainability Officer (CSO)